{"id":15035,"date":"2025-07-23T10:05:15","date_gmt":"2025-07-23T10:05:15","guid":{"rendered":"https:\/\/axevera.com\/?p=15035"},"modified":"2025-07-23T10:05:20","modified_gmt":"2025-07-23T10:05:20","slug":"czech-republics-economic-landscape-and-the-ties-with-italy","status":"publish","type":"post","link":"https:\/\/axevera.com\/en\/2025\/07\/23\/czech-republics-economic-landscape-and-the-ties-with-italy\/","title":{"rendered":"Czech Republic\u2019s economic landscape and the ties with Italy"},"content":{"rendered":"\n

The Czech Republic is one of the most advanced and dynamic economies in Central Eastern Europe today. Its economic structure is primarily oriented on industrial manufacturing<\/strong>, with a particular focus on the automotive <\/strong>sector, generating around 10% of the national GDP (IMF pdf abstract, 2023)<\/em>.<\/p>\n\n\n\n

Apart from automotive, they are at the pinnacle in development of precision mechanics, chemicals, electronics, and metallurgy.<\/p>\n\n\n\n

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Central Europe, the center of opportunity<\/strong><\/em><\/p>\n\n\n\n

Central geographical position, belonging to the European Union, and a modern infrastructural network makes the country attractive for commercial exchange.<\/p>\n\n\n\n

One of the main factors adding to the country\u2019s attractivity is access to the credit market and favorable fiscal environment with respect to other countries of the EU.<\/p>\n\n\n\n

The cost of labor, even if increasing, remains below the EU average, and the availability of a specialized technical workforce continues to represent a competitive advantage (Eurostat, 2025<\/em>)<\/p>\n\n\n\n

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All that glitters is not gold<\/strong><\/em><\/p>\n\n\n\n

Nonetheless, at the front of the solid industrial performance and numerous attractive factors, there are still some fragile structural elements that deserve attention.<\/p>\n\n\n\n

At the macroeconomic forefront, the Czech economy depends on its exports<\/strong>, of which 85% goes in the Eurozone (Eurostat, 2024<\/em>) and  \u2153 exclusively to Germany (World Integrated Trade Solution<\/em>, 2022<\/em>). These close ties make the country vulnerable to possible external shocks, mostly in relation to the main European economies, Germany in particular.<\/p>\n\n\n\n

Moreover, the lack of euro exposes the czech crown to oscillation, influencing the international financial market movements<\/p>\n\n\n\n

However, the overall framework remains favourable for solid economic cooperation, demonstrated also by the interconnected trade relations with Italy.<\/p>\n\n\n\n

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Italy and the Czech Republic: an industrial hub in the heart of Europe<\/strong><\/em><\/p>\n\n\n\n

The economic relationship between Italy and the Czech Republic is currently one of the strongest and most complex among European Union countries. In 2024, Italy ranks as the sixth largest customer and fifth largest supplier of the Czech Republic, while the latter represents Italy’s fifteenth largest export market globally and eleventh largest in Europe. This is a well-established bilateral relationship, supported by the presence of over 3,000 Italian companies (Italian<\/em> Embassy in Prague, 2020<\/em>) in the Czech Republic, operating in a variety of strategic sectors.<\/p>\n\n\n\n

Trade between the two countries has consistently exceeded \u20ac17 billion in recent years, with a substantially balanced trade balance between exports and imports. Specifically, in 2024, Italian exports to the Czech Republic reached \u20ac8.2 billion, while imports reached \u20ac9.2 billion, accounting for 4% of total Italian exports (Trading Economics, Italy exports by country, 2024)<\/em>.<\/p>\n\n\n\n

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Evolution of Czech\u2013Italian Trade, ranging years 2022-2024: a growing link<\/strong><\/em><\/p>\n\n\n\n

Trade between Italy and the Czech Republic is strongly oriented in industrial sectors, with machinery, automotive, chemicals, and textiles at the forefront. The following data offers a snapshot of key import and export flows from 2022 to 2024, highlighting the main sectors driving the economic partnership.<\/p>\n\n\n\n

ITALIAN IMPORTS from CZECH REPUBLIC<\/em><\/strong><\/p>\n\n\n\n

Industry<\/strong><\/td>2022<\/strong><\/td>2023<\/strong><\/td>2024<\/strong><\/td>%change y22-y24<\/strong><\/td><\/tr>
Primary sector<\/td>43,17<\/td>52,72<\/td>105,91<\/td>145,33%<\/em><\/td><\/tr>
Tobacco<\/td>217,73<\/td>154.39<\/td>162,85<\/td>-25,21%<\/em><\/td><\/tr>
Textile<\/td>318,21<\/td>316,42<\/td>247,52<\/td>-22,21%<\/em><\/td><\/tr>
Chemicals<\/td>756,09<\/td>536,15<\/td>567,84<\/td>-24,90%<\/em><\/td><\/tr>
Machinery and equipment<\/td>1.062,84<\/td>1.125,15<\/td>966,56<\/td>-9,06%<\/em><\/td><\/tr>
Motor vehicles, trailers, and semi-trailers<\/td>1.839,53<\/td>2.411,14<\/td>2.291,30<\/td>24,56%<\/em><\/td><\/tr><\/tbody><\/table>
Data has been retrieved by InfoMercatiEsteri, economic italian observatory.<\/em><\/figcaption><\/figure>\n\n\n\n

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ITALIAN EXPORTS to CZECH REPUBLIC<\/em><\/strong><\/p>\n\n\n\n

industry<\/strong><\/td>2022<\/strong><\/td>2023<\/strong><\/td>2024<\/strong><\/td>%change y22-y24<\/strong><\/td><\/tr>
Primary sector<\/td>148,32<\/td>146,79<\/td>166,39<\/td>12,18%<\/em><\/td><\/tr>
Tobacco<\/td>178,26<\/td>91,73<\/td>22,53<\/td>-87,36%<\/em><\/td><\/tr>
Textile<\/td>225,13<\/td>245,02<\/td>218,78<\/td>-2,82%<\/em><\/td><\/tr>
Chemicals<\/td>740,35<\/td>695,02<\/td>677,47<\/td>-8,49%<\/em><\/td><\/tr>
Machinery and equipment<\/td>1.272,01<\/td>1.399,30<\/td>1.239,71<\/td>-2,54%<\/em><\/td><\/tr>
Motor vehicles, trailers, and semi-trailers<\/td>646,31<\/td>751,12<\/td>769,17<\/td>19,01%<\/em><\/td><\/tr><\/tbody><\/table>
Data has been retrieved by InfoMercatiEsteri, economic italian observatory.<\/em><\/figcaption><\/figure>\n\n\n\n

A detailed analysis of the data reveals a complex picture.<\/p>\n\n\n\n

Italy mainly exports machinery (1.24 billion), confirming that Czech industry is technologically advanced and capable of absorbing highly specialized capital goods. This demonstrates a level of productive development comparable to that of the major European industrial economies and strong integration with Italian manufacturing supply chains.<\/p>\n\n\n\n

In the automotive sector, Italy imported goods worth \u20ac2.29 billion from the Czech Republic in 2024, almost triple the value of exports. This imbalance reflects the Czech Republic’s role as a European automotive production hub, thanks to the presence of large groups, \u0160koda being the most iconic. In this context, Italy acts more as an outlet market than as a supplier. The outlook for the sector remains positive, with Czech automotive exports to Italy growing by approximately 24.6% between 2022 and 2024.<\/p>\n\n\n\n

A significant figure concerns chemical products, which, while remaining central to bilateral trade, recorded a 8,49% decline in Italian exports and a 24,90% decline in imports in 2024. The decline reflects rising energy costs, cooling post-pandemic demand, and the transition to a more sustainable supply chain, driven by new EU regulations. This is a cyclical adjustment, not a structural crisis, in a sector that continues to play a strategic role for both countries.<\/p>\n\n\n\n

The tobacco sector, on the other hand, shows a sharp decline in Italian exports, from 178 million in 2022 to just 22 million in 2024, depicting a 87,36% downfall in just three years. This decline is mainly attributable to a reorganization of domestic production in the Czech Republic, accompanied by a diversification of external supply towards more cost-competitive partners.<\/p>\n\n\n\n

Trade in the primary sector is also on the rise, indicating a gradual diversification in the nature of commercial relations.<\/p>\n\n\n\n

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Enhancing an already solid partnership<\/strong><\/em><\/p>\n\n\n\n

In conclusion, the Czech Republic remains a strategically important trading partner for Italy. Despite some internal structural problems, it offers competitive conditions and considerable potential for development.<\/p>\n\n\n\n

We consider that a more integrated cooperation, focused on administrative simplification joint to the strengthening of the production chains, could be the key to fully exploiting the partially untapped potential of this economic relationship.<\/p>\n\n\n\n

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AI generated image<\/em><\/p>\n\n\n\n

sources:<\/em> https:\/\/wits.worldbank.org\/CountrySnapshot\/en\/CZE\/textview<\/a>, Scambi Commerciali (REP.CECA) – aggiornato al – infoMercatiEsteri – www.infomercatiesteri.it<\/a>, Italy Exports By Country<\/a>, https:\/\/wits.worldbank.org\/CountrySnapshot\/en\/CZE\/textview<\/a>.<\/a><\/p>\n\n\n\n

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<\/p>\n","protected":false},"excerpt":{"rendered":"

An overview of the Czech Republic\u2019s industrial economy and its trade relations with Italy. Includes data from 2022\u20132024 on main sectors.<\/p>\n","protected":false},"author":5,"featured_media":15074,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[525],"tags":[],"yst_prominent_words":[],"class_list":{"0":"post-15035","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-en"},"_links":{"self":[{"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/posts\/15035","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/comments?post=15035"}],"version-history":[{"count":6,"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/posts\/15035\/revisions"}],"predecessor-version":[{"id":15084,"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/posts\/15035\/revisions\/15084"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/media\/15074"}],"wp:attachment":[{"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/media?parent=15035"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/categories?post=15035"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/tags?post=15035"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/axevera.com\/en\/wp-json\/wp\/v2\/yst_prominent_words?post=15035"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}